FriendlyScore writes

It’s likely that you’ll have to borrow money at some point in your life, but whether you need funds for a new car, holiday or home improvements, should you choose a credit card or a loan? We’ve rounded up the 6 best reasons why a loan might be the best choice for you.

We all lose our way sometimes – especially when it comes to finances. Life can be unpredictable and even the best-laid plans can go wrong without warning. Cars break down, trips need to be taken, jobs turn out to be not quite what they seemed, families need help – the list is endless.

Financial scams are now more intelligent than ever before and it’s important to understand that it’s not just the elderly and vulnerable people that are targeted. In reality, it’s very easy to become a victim but the best way to prevent financial fraud is knowledge.

Having some back-up cash in your savings can make you feel a little more secure in life. We all know how hard it can be to put money away though, especially if you often get to the end of the month without much left in the bank. Our tips will help you top up your savings and make the most of the money you do have.

The Bank of England’s base rate is the rate of interest we pay on the reserves held by banks at the Bank of England. Banks normally pass this rate onto customers, which affects the amount savers earn and borrowers pay.

Whether you’re male, female, young or old, car insurance premiums can be a huge expense. Instead of allowing your insurance to auto-renew every year, a few simple factors could potentially save you hundreds of pounds.

A balance transfer is when you move debt from one credit card to another. For example, if you’ve got multiple debts spread around, by paying them off with one card, you’ll reduce interest payments and can focus on paying one debt off.

Mobile phones are really important, right? We use our mobiles all the time (stats from 2017 found that millennials check their phones up to 150 times a day). Often our whole lives are stored on our phones. Our contacts, our photos even our text messages are all part of our personal history. Without a decent phone, it feels like we can’t fully participate in the world.

Borrowing money is normal for lots of people but too much debt can be expensive, stressful and affect your chances of borrowing in the future. If you’re worried about debt, don’t panic - remember that it is possible to take control.

It’s likely that you’ll need to take a loan out at some point in your life to pay for a large purchase or help with an expense. If that’s the case, you’ll probably want to make your borrowing go as far as possible. But getting the best loan rate doesn’t just depend on how much you want to borrow.

If you’re looking for a credit card, there are lots of questions you need to ask yourself first. Why do you want one? Will you be paying off what you owe every month? Or do you want to spread the repayments over time?

Your credit report contains a lot of information about you which a lender will consider when working out whether they want to lend to you. That covers everything from your address to your existing use of credit and whether you’ve made any late payments on that borrowing. It also includes ‘footprints’ left from previous credit applications, which will then affect your overall score and your chance of being approved for credit in future.

A credit score is used by lenders to assess the level of risk in lending to you. The higher your credit score, the more likely you are to be offered reduced interest rates, better offers, and cheaper premiums. But don’t panic if your credit score’s low, as there’s a number of easy ways to improve it fast.